Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
CANADIAN EXPLORATION EXPENSES & DEPRECIABLE PROPERTY
QUESTION 20
Does Revenue Canada believe that the capital cost of a depreciable asset that otherwise meets the definition of Canadian Exploration Expense ("CEE") or Canadian Development Expense ("CDE") may be included in the cumulative accounts in respect of such expenses, and amortized at a 100% or 30% rate, as the case may be; or does Revenue Canada believe that the cost of depreciable property must always be amortized in the form of capital cost allowance?
DEPARTMENT'S POSITION
It remains our view that, while the phrases "any expense" and "any cost or expense" found in the respective preambles of the above-mentioned definitions may be interpreted very broadly, the object and spirit of the Income Tax Act does not allow depreciable property to be categorized as CEE or CDE.
Therefore, our position remains that if an asset otherwise would be included in a prescribed class then it is not CEE or CDE.
CPTS June 17, 1993
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